For over a decade, DailyForex has been the trusted forex broker authority, and we've extended that same rigorous approach to the evaluation of proprietary trading firms. Our prop firm listings highlight the top-performing firms in specific categories, from instant funding to firms supporting EAs and copy trading. Each recommendation is the result of detailed analysis and strict criteria, ensuring traders can find the best match for their trading goals. Learn more about our methodology and how we maintain editorial integrity here.
Balanced-based drawdown prop firms offer retail prop traders greater flexibility than those that offer an equity-based drawdown method. Both methods aim to limit risk, and while one appears more generous on paper, it can result in faster breaches of drawdown limits. Therefore, prop traders should understand the difference and pick the one that works best with their strategy. I have analyzed both drawdown methods and provided examples below for prop traders to comprehend the minor but defining difference. Please do not trade with any prop firm until you have reviewed my balanced-based and equity-based drawdown examples.
Balance-Based Drawdown Prop Firms Comparison
.webp "Hola Prime"){kind=logo}
- Hola Prime, The best prop firm for ultra-fast withdrawals.
- Eightcap Challenges, .
- Axi Select, .
- DNA Funded, .
- Sabiotrade, daily trading signals on the Quadcode platform and full-year mentorship.
- Goat Funded Trader, The best prop firm for a monthly salary.
| | | | | | |
Year Established | 2024 | 2015 | 2023 | N/A | 2023 | 2022 |
Minimum Deposit | ||||||
Trading Platform(s) | Other, MetaTrader 5, cTrader, DX Trade+ | Other, MetaTrader 4, MetaTrader 5+ | MetaTrader 4, MetaTrader 5 | Other+ | Proprietary platform | Other, MetaTrader 5+ |
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
Hola Prime
In Summary The best prop firm for ultra-fast withdrawalsHola Prime is a transparent retail prop trading firm with four trading platforms and a maximum profit share of up to 95%. Traders can choose a one-step or a two-step evaluation for portfolios between $5,000 and $300,000, with an evaluation fee between $48 and $1,499. Alternatively, the Direct account is without evaluation and a one-time cost between $129 and $2,249. Therefore, I rank Hola Prime among the best prop firms.
Traders must trade for at least two days per challenge. The maximum daily drawdown is between 3% and 5%, with a maximum drawdown between 5% and 8%.
Pros & Cons
- A maximum profit share of 95%
- Four trading platforms
- Scalable accounts up to $4M
- One hour payouts
- Reletively newer firm (around one year old)
Eightcap Challenges
In SummaryDay traders get a unique offer: a 1-hour, 2-hour, 4-hour, and 8-hour challenge, a trading stake selection between $5 and $500, and payout ratios of 2, 5, and 10 times. The selection determines the drawdown and profit target, while all accounts start with a $10,000 balance. Traders can use MT4/MT5 and TradeLocker. This places Eightcap Challenges among the best prop firms. Qualifying traders can request payouts in Bitcoin, USDT (TRC20), or USDT (ERC20). KYC requirements are mandatory for withdrawals exceeding $1,000, in line with industry standards.
Eightcap Challenges also offers traditional one- and two-phase evaluations with five account sizes ranging from $5,000 to $200,000, with up to $600,000 in allocated capital per trader. The maximum leverage is 1:100, with a 80% profit share. The one-time evaluation fees range between $99 and $1,299. The profit target is 10% except for the second phase of the two-phase evaluation, where it decreases to 8%.
Pros & Cons
- No time limits on One-Phase and Two-Phase challenges
- Traders can complete challenges within hours and earn payouts on the same day.
- Day Trader Challenges offers a completely customizable trading experience – traders choose their own duration, stake and payout.
- Operated by the multi-regulated Eightcap Group
- Scalping is restricted; trades must be open for 60 seconds
Axi Select
In SummaryAxi launched its Axi Select in-house prop trading service, which sets itself apart from the industry by not requiring a fee-based evaluation, making it 100% free. Interested traders must open a live Axi trading account, fund it with at least $500, and start trading. The personalized Edge Score determines eligibility for a funded account, and Axi has a six-stage program that scales with the trader. For the initial stage, the $500 deposit grants access to a $5,000 account, and the profit share is 0%. It lasts for at least 30 trading days, has a 7% profit target, and requires 20 trades.
The second stage requires a minimum equity balance of $1,000, caps funding at $20,000, and increases the profit share to 40%. The maximum leverage is 1:100 with a maximum drawdown of 10%. The Axi Select structure is created highly professionally, making Axi one of the best prop firms.
Pros & Cons
- Unrestrictive Rules: There are no time limits to qualify; EAs are permitted.
- Scale up to $1 Million
- Backed by a Broker: Run by Axi (founded 2007)
- No Registration Fees: A unique model where you do not pay for an evaluation; the entry cost is zero.
- Regional Restrictions: Program is not available to the US, UK, EU, or Australia.
DNA Funded
In SummaryI rank DNA Funded among the best Forex prop firms for its low evaluation fees. Traders pay $49 to $1,209 for portfolios between $5,000 and $200,000. Traders can choose among 16 challenges and one-phase, two-phase, and 10-day rapid evaluations. DNA Funded offers add-ons to increase the profit share up to 90% and decrease the payout frequency to seven days.
Prop traders will trade via the TradeLocker platform. The maximum daily drawdown is 5% for the one-step evaluation, 6% for the two-step alternative, and 4% for the 10-day challenge, with a maximum drawdown of 6%, 10%, and 5%, respectively.
Pros & Cons
- Maximum profit share of 90%
- Max allocation of funded accounts up to $600K
- Transparent trading conditions with TradeLocker login details
- A well-balanced asset selection of 800+ assets
- Limited operational history
Sabiotrade
In Summary daily trading signals on the Quadcode platform and full-year mentorshipSabioTrade is one of the newer nest prop trading firms, headquartered in Ireland but owned by well-known Cypriot FinTech company Quadcode, which also operates the brokerage IQ Option. It makes SabioTrade an exciting entry into prop trading, as it offers the user-friendly proprietary Quadcode-powered trading platform with 100+ built-in indicators, widgets, and alerts. Traders also get trading signals and a three-step educational course.
SabioTrade’s maximum leverage is 1:30, and potential prop traders must complete a two-day rapid training and comprehension check. A 7-day free trial is available, and SabioTrade offers three funded account options.
Pros & Cons
- Dashboard-integrated trading platform by QuadCode Markets
- Quick 1-step assessment
- Funded accounts $10,000-$200,000
- Profit share between 70% and 90%
- No weekend positions
Goat Funded Trader
In Summary The best prop firm for a monthly salaryGoat Funded Trader is a unique prop trading firm offering qualifying traders a monthly salary between $300 and $500. It also ranks among the prop firms with the lowest evaluation fees, with a maximum profit share of 100%. Other benefits include instant funding, no hidden rules, and a reward guarantee. The profit targets range between 6% and 10% with daily drawdowns between 3% and 4%, and maximum drawdown between 6% and 8%. Therefore, I rank Goat Funded Trader among the best prop firms.
Traders can use MT5, TradeLocker, or Match Trader with commission-free trading on select assets.
Pros & Cons
- 100% in-house technology
- $9.1M+ paid out to traders
- 111K+ active accounts from 98K+ traders
- Processes 36K+ traders daily
- No equity trading
What Is a Balanced-Based Drawdown?
A balanced-based drawdown is one of two methods to calculate a decrease in account balances. The other method is an equity-based drawdown. Prop traders should understand that any drawdown method also includes floating profits and losses, and many prop firms will reset the profits after midnight, making it dangerous to keep trading losses overnight.
Prop firms use a balanced-based drawdown as a risk management measure, and most prop firms have a maximum drawdown of 10% with a smaller 5% daily drawdown limit. The values can vary based on select parameters outlined in the trading conditions.
Example of a Balanced-Based Drawdown
- A prop trader pays for a $50,000 account
- The daily drawdown limit is 5%, meaning a trader cannot lose more than $2,500 during a trading session
- The maximum drawdown is 10%, meaning a trader cannot decrease the account balance below $45,000
- A balanced-based drawdown has static levels, irrelevant if the account equity increases above or decreases below the initial balance
What Is a Balance-Based Drawdown Prop Firm?
A balanced-based drawdown prop firm uses the static balance-based drawdown method rather than the dynamic equity-based drawdown alternative. The former is more restrictive upfront, but more generous overall, while the latter has the opposite characteristics.
Balance-Based Drawdown Prop Firms – Pros and Cons
Prop traders must understand the pros and cons of balance-based drawdown prop firms to avoid confusion and avoidable breaches of trading rules.
The Pros of Balance-based Drawdown Prop Firms
- Access to trading capital
- A generous profit split
- Well-established prop firm partnerships with trusted brokers
- Static drawdown values that are more generous after prop traders increase their account balance
The Cons of Balance-based Drawdown Prop Firms
- Unregulated business
- Tight risk management rules
- Some consistency rules make select trading strategies uncompetitive
- Not all prop firms allow algorithmic trading
- Performance pressure
- Inexperienced traders rush to prop firms offering educational content
The Difference between Balance-Based Drawdown and Equity-Based Drawdown
The primary difference is that a balance-based drawdown has a static drawdown value based on the starting account balance versus a dynamic equity-based drawdown that adjusts each trading day based on the account balance.
A balance-based drawdown is more restrictive at first. As the prop trader increases the balance, it becomes more generous, as trading profits serve as a buffer for potential volatility spikes and trading losses. For example, a starting balance of $50,000, with a 10% maximum drawdown, allows a trader to decrease the account to $45,001 or $4,999. Once a trader increases the account to $55,000, the total acceptable loss is $9,999.
An equity-based drawdown would adjust the $55,000 to $49,501 and move it higher as the account equity increases. It is better for the prop firm, as it applies ongoing upside performance pressure and maintains strict risk management rules.
Bottom Line
Balanced-based drawdown prop firms offer more generous risk management to prop traders than equity-based alternatives. Many prop firms favor the latter, as it applies stricter risk management.
